Puravankara, builders to take up stuck projects

“We have reached a critical level in our focused markets but will continue to expand. Puravankara has identified Pune and Mumbai as the top 5-6 core cities that will be growth accelerators for the company across India,” said Abhishek Kapoor, COOresidential, Puravankara, adding, “Going ahead, Bengaluru, Hyderabad, Chennai, Mumbai and Pune will be our focus markets.”

Bengaluru: Property developer Puravankara has teamed up with local builders in Pune and Mumbai to kickstart stuck projects in the backdrop of a severe liquidity crunch, a move that will help it venture into the residential market of western India.

“We have reached a critical level in our focused markets but will continue to expand. Puravankara has identified Pune and Mumbai as the top 5-6 core cities that will be growth accelerators for the company across India,” said Abhishek Kapoor, COOresidential, Puravankara, adding, “Going ahead, Bengaluru, Hyderabad, Chennai, Mumbai and Pune will be our focus markets.”

Many developers have entered the western and northern markets to restart stuck projects amidst a cash crunch, the stringent Real Estate Regulatory Act and the threat of being taken to NCLT.

Financially strong firms like the Prestige Group, Godrej Properties and Kalpataru Group have entered into joint ventures, joint development and development management agreements in the country’s largest property market by volume.

“Purvankara will develop over 11million sq ft area totaling to 13 projects across different major cities, of which 7 projects with 8.2 million sq ft area to be under its Provident brand that caters to mid-income customers,” the company said.

The company plans to launch 7 m sq ft of residential portfolio across these two markets spread across Provident and Puravankara brands over the next 24-36 months. It currently builds luxury homes under the Purvavankara Luxury brand, while premium affordable residences are built under the Provident Housing brand, launched in 2008. Currently, 65% of the company’s business comes from the mass housing brand — Provident — while the rest from other Puravankara brands.

Non-Bengaluru projects now account for 53% of the share of ongoing and 77% of new launches for Puravankara. Provident accounts for 3/4th of the launch pipeline.

Separately, the firm is expanding its commercial portfolio. It plans to develop 10 m sq ft of commercial projects and venture into retail development over the next five years across major cities.